Banks raise deposit interest rates
In need of raising medium and long term capital, which serves business activities at the end of the year and reduction in the ratio ...
Franchise explosion in Vietnam
Franchise has facilitated many foreign brands to break into Vietnam. In addition to franchise industry for food, beverage or education, franchising in goods retail industry...
6 leading economic sectors in Central region
There are 6 coastal and marine economic sectors mainly developed in the Central region, which creating positives results ...
91.9% companies are optimistic about production activities in the last 6 months this year
FDI companies sector is witnessed a positive production volume, 91.1% of which are expected to increase or remain their volume ...
CPTPP makes shift of Vietnam from deficit to surplus
Most signed free trade agreements (FTA) have reflected that Vietnam always run deficit trend ...
- 13 / 05 / 2022 -
VAT on goods rented or borrowed from export processing enterprises

On April 21, 2022, the General Department of Customs issued Official Letter 1400/TCHQ-TXNK in 2022 on tax treatment of goods rented and borrowed from export processing enterprises (“Dispatch 1400”).

Accordingly, Dispatch 1400 has recorded the guidance of the General Department of Customs related to VAT for goods rented or borrowed from export processing enterprises, the following will be detailed:
Subjects of application: Goods rented or borrowed by domestic enterprises from export processing enterprises in the form of temporary import for re-export to serve processing and production for export.
– Domestic enterprises that have registered declarations under the form of temporary import are not subject to VAT.
– In case the lease or loan term has expired, but the domestic enterprise continues to use it and does not re-export, immediately after the lease or loan term expires, the domestic enterprise must declare and pay VAT together with the import tax on the new customs declaration as prescribed in Clause 12, Article 1 of Decree No. 59/2018/ND-CP dated April 20, 2018 of the Government.
– In case the rental or borrowed goods are damaged in the course of use, cannot be re-exported, must be destroyed, and have been destroyed according to the provisions of law, the domestic enterprise is not required to declare and pay tax VAT for this number of leased or borrowed goods.

Dispatch 1400 takes effect from April 21, 2022.

* This newsletter is only for informational purposes about newly issued legal regulations, not used to advise or apply to specific cases.

Hope the above information is helpful to The Esteemed Readers.
Bizlawyer is pleased to accompany The Esteemed Readers!